There are a lot of assumptions that individuals make when it comes to non-medical life insurance, but it is imperative to understandthat ALL life insurance policies are contracts of adhesion. Insurance companies will make an “offer” and the applicant can either accept or decline, there is no negotiating. Why is this important when it comes to non-medical life insurance? Because a lot of people assume non-medical life insurance has no underwriting process and people are guaranteed to get a policy, but this is not the case with non-medical life insurance.
Applying for Non-Medical Life Insurance
The first step in acquiring non-medical life insurance is to speak with a licensed insurance agent, decide on a plan, and then complete an application. Once the insurance company receives the application, the underwriters analyze the information on the forms, check the Medical Information Bureau (MIB), do a prescription “script check”, run a Motor Vehicle Report (MVR), and sometime even order the proposed insured’s Attending Physicians Statements (APS). Generally, non-medical life insurance policies are designed to be able to issue the policy without the proposed insured completing a paramedical exam; but the insurance company can always require one to be done. There is no guarantee the insurance company will come back with an “offer”; in fact, a large amount of non-medical life insurance applications are declined every year.
Heath Rating Classification
Typically, the best rate class for a non-medical policy is a standard rating. For people in excellent health, non-medical life insurance is not a very good deal because they can pay a lot less if they go through the traditional life insurance underwriter process and complete a paramedical exam. This is because they could potentially qualify for “Preferred Plus” rates. Most life insurance companies offer “Preferred Plus”, “Preferred”, and “Standard Plus” ratings, which are all better than “Standard,” and cost less for the policy. With the availability of information, it is difficult for people to hide things from the insurance companies and sneak through the non-medical underwriting process.
That being said some companies are beginning to add the best health ratings, without a medical exam, if an applicant passes an extremely thorough electronic inspection.
Where it is a Good Deal
Non-medical life insurance is a good deal for someone who is afraid or otherwise anxious of completing a paramedical exam and getting their blood drawn, because there is no other option other than group life insurance through their work. It is also a fair deal for someone who would qualify for non-medical rates anyway, meaning people who would be a “Standard” rating, even if they went through the paramedical exam process due to things like: height & weight, family history, medications, medical history, etc.
If you, or someone you know, is looking for non-medical life insurance or any type of life insurance, we welcome the opportunity to give you more information. You can visit www.pacificinsurancegroup.comfor free, instant life insurance quotes without requiring your phone number or email. You can also call our Bellevue, Washington office at 425-246-4222.